Automotive Sector Improves The Better Public Power Purchase

By : Ahmad Fadli And Aldi Firhand. A | Monday, October 02 2017 - 22:07 IWST

Chevrolet
Chevrolet

INDUSTRY.co.id - Jakarta- Bahana Securities believes that the recovery in automotive sales will be an indicator of improved public purchasing power, particularly the middle class.

"A number of positive sentiments began to overshadow the Indonesian economy, the recovery of auto sales and motorcycles in the industry is an indicator of improved public purchasing power," said Plt Head of Research and Strategy Bahana Securities Henry Wibowo, quoting ANTARA, Monday (2/10).

Data from the Association of Indonesian Automotive Industries (Gaikindo) showed that car sales grew 5.6 percent in August 2017 compared to the same period last year or 96,461 units.

Thus, total car sales in the period from January to August were 715,291 units, up 3.8 percent on an annual basis.

Meanwhile, the Indonesian Motorcycle Industry Association (AISI) noted that motorcycle sales rose 5 percent over the same period last year to 554,923 units.

Thus, total motorcycle sales from January to August stood at 3.793 million units.

Bahana estimates that by the end of the year, car and motorcycle sales will be in the range of 3 percent-5 percent. Car sales growth is expected to be better than motorcycle sales due to government-run energy reforms since the beginning of the year.

On the other hand, according to Henry, the move by Bank Indonesia (BI) to cut the BI Rate (BI 7-Day Repo Rate) to 4.25 percent in September will be a boost for the recovery of middle and lower class purchasing power.

"One of the sectors that benefited after BI cut its benchmark interest rate in August and September was the automotive sector, because the purchasing power of middle class people in general bought by installment was quite helpful," he explained.

News Comment

Today's Industry

Ilustrasi Bandara

Sabtu, 17 Februari 2018 - 23:00 WIB

2019, Banyuwangi Airport Serves International Flights

Jakarta - Minister of Tourism (Menpar) Arief Yahya said the central government continues to encourage Banyuwangi to develop tourism. The area nicknamed The Sunrise of Java has three criteria…

Imported Rice (Photo Dok Industry.co.id)

Sabtu, 17 Februari 2018 - 23:00 WIB

3 Day Detained, Vietnam's Imported Rice Finally Dismantled

Vietnamese Vinh Hung ship carrying imported rice, finally allowed to unload the cargo, after a boat loaded with rice as much as 6 thousand tons was stuck 3 days in the waters of Merak.

Menperin visit automotive factory in Serang Banten

Sabtu, 17 Februari 2018 - 22:47 WIB

Government Confident Industry Growth 5.67 percent

By creating a conducive business climate with industry players, the Ministry of Industry is optimistic to boost the growth of non-oil and gas industry in 2018 by 5.67%.

Menteri BUMN Rini Soemarno (Foto Dok Industry.co.id)

Sabtu, 17 Februari 2018 - 22:00 WIB

YLKI Urges The Government to Take Sides on SOEs

Jakarta - The Chief Executive of the Indonesian Consumers Foundation (YLKI) Tulus Abadi asked the government to maintain the alignment to state-owned enterprises (BUMN) as a real manifestation…

Business Illustration of Aircraft Maintenance Services

Sabtu, 17 Februari 2018 - 21:25 WIB

Achieve Big Profits, This Is The Four Consistent MRO Business Companies in Indonesia

the Government continues to spur the development of aircraft maintenance and repair, maintenance and overhaul (MRO) industries in Indonesia.